Dive Brief:

• Hospital CEO turnover remained at a rate of 16% for the third consecutive year in 2022, according to new research from the American College of Healthcare Executives — the lowest rates since 2011.
• However, a separate report from workplace consultancy Challenger, Christmas & Gray found hospitals have announced 82 CEO changes as of June this year, a 49% increase from the 55 departures during the same period in 2022.
• Continuity at the helm can prevent churn in other positions. A 2006 study from the ACHE found CEO turnover is associated with an increased likelihood of vice presidents, chief financial officers and chief medical officers leaving the organization within the next year.

Dive Insight:

The COVID-19 pandemic, historic workforce challenges and an unfavorable economic climate have highlighted the value of strong hospital leadership, Deborah Bowen, ACHE’s president and CEO, said in a statement. 

However, some studies suggest the past three years may have taken a toll on some leaders. One survey conducted last year found burnout has plagued almost three-quarters of executives, making them less hopeful about the future of the industry and less determined to make an impact in their careers. Andrew Challenger, leadership expert and senior vice president of Challenger, Christmas & Gray, attributed at least some of the industry turnover his company observed this winter to burnout. 

“Hospitals and hospital systems have undergone incredible challenges over the last three years as the pandemic raged, burned out healthcare workers, and pushed resources to the limits. Some of these leaders themselves are likely burned out as well, while others are moving to different hospitals to execute skills they’ve gained during those difficult times,” Challenger said in a statement.

Bowen stressed the importance of succession planning should a CEO plan to depart the health system — a reality that many more health systems may face this year compared with last, according to Challenger’s monthly CEO departure reports, which have found a steady uptick in hospital leader departures this year. Bowen called succession planning “a critical piece to ensuring that healthcare organizations have a pipeline of leaders who are well-prepared to address the challenges of tomorrow.”

However, as of 2019, over half of hospitals reported to Korn Ferry they didn’t have a “ready-now” successor and 27% didn’t have any succession plans at all.

Last year, the American Hospital Association released guidance to help hospitals develop such documents, outlining key stakeholders to involve in conversation, offering diagnostic questions to structure succession planning conversations and links to additional resources.

“Particularly over the last two plus years, succession planning may have struggled to garner leadership attention amidst significant challenges associated with the pandemic,” the guide said. “But given the talent shortages, turnover and retirements, the talent landscape in healthcare is rapidly shifting and efforts are needed to consider and plan for the future of leadership.”